James or others: Given your understanding of spreads/leaps .. . is there anything that you think you would/could do with CMGI INVESTools Advisory, November 22-26, 1999
By John Brobst, Editorial Director, INVESTools.com
1. New AltaVista Portal Means Buy CMGI (CMGI)
Internet investor CMGI (CMGI) launched a revamped AltaVista
portal on October 25, and special situations advisor Jonathan
Steinberg likes what he sees. The new AltaVista features an
enhanced search facility that excludes URLs offering duplicate
information and can also look for audio and video images.
Steinberg also raves about AltaVista's new shopping channel,
which features consumer reviews and price comparisons. To top
it off, AltaVista now offers live concerts, interviews and
real-time stock market quotes. "The redesigned AltaVista is
sure to give Yahoo and America Online a run for their money,"
Steinberg says.
Steinberg is also bullish about two other CMGI ventures.
Recent acquisition Flycast Communications (FCST) just reported
that its cost-per-thousand ads served grew 12% from the
previous quarter. That drove revenues to $13 million, 400%
more than last year and 88% more than the previous quarter.
Another feather in CMGI's cap is NaviSite (NAVI), which offers
high-end web hosting services. The company went public on
October 22, 1999, and the stock soared roughly 150% to $34.63
on the first day of trading. Steinberg also notes that the
issue was oversubscribed and CMGI had to hold a lottery to
distribute the shares.
"The resounding success in the midst of market uncertainty is
encouraging," Steinberg says, adding it demonstrates investor
loyalty and confidence in CMGI's management. He looks forward
to AltaVista's IPO, slated for 2000, and maintains a buy
rating on CMGI.
For more on Jonathan Steinberg's advice see "CMGI," December
1999, Individual Investor's Special Situations Report.
Jonathan Steinberg provides one undervalued stock per month
poised for substantial growth and profit. This might be an
emerging company ready for growth or an established firm on
the verge of a turnaround. It is also undiscovered (so far) by
the market and investment press. SSR has consistently outpaced
all major market indexes by a considerable margin.
Thanks to all for any opinions
jaytee |
